PGW contractors reach settlement with city

Three contractors for the Philadelphia Gas Works have reached agreements with the city and PGW to settle allegations that the contractors failed to properly install concrete and asphalt over gas lines that had been repaired or replaced.

The contractors were identified as General Asphalt Paving Company of Philadelphia, Anthony Verrecchia & Sons Inc. and Cedotal Construction Inc. Following an investigation of PGW contracts, the city’s Office of Inspector General concluded that the three contractors had billed PGW for paving work that did not satisfy the terms of the contracts awarded to those companies by PGW. Core samples extracted from PGW project sites did not meet state or city standards for concrete and asphalt installation, the inspector general alleged.

The companies have agreed with PGW and the city to settle the allegations for collective payments of $735,000, but they deny wrongdoing or breach of contract.

All three companies have also signed corporate integrity agreements with PGW, certifying that they will fully comply with the regulations for installing asphalt and pavement. PGW may withhold payment from the companies for any future work deemed inadequate.

The companies will also adopt written policies and procedures to help their employees understand and follow street-paving regulations. At least one hour of relevant training will be required for those who work on PGW contracts and projects. The executive summary of the investigation can be read on OIG’s website, www.phila.gov/ig/reports. ••